I TOLD YOU SO

In October 2013, to be specific. That legalizing marijuana would be a total failure, to be more specific. That was 3 months BEFORE legal marijuana became law in Colorado, and 9 months before in Washington. And I based it strictly on market forces, just as Admin does for his many praiseworthy articles. As usual, I got hammered for my article. Here’s what I said.

Quote. “So let’s look at some market realities about the marijuana business in the U.S. And how these realities stack up against states who have legalized marijuana for personal and/or medical use to make a few bucks.

CULTIVATION. Cannabis cultivation and marijuana production operations are extensive throughout California, particularly in northern California. Outdoor cannabis cultivation is increasing dramatically in the northern region of the state, primarily because of expanded cultivation by Mexican DTOs (Drug Trafficking Organizations); as a result, the area is becoming one of the most significant outdoor cannabis grow areas in the state.

Oops. Not only is marijuana being grown extensively in Mexico, the cultivation here in the U.S. is largely under the control of the Mexican DTOs. I pointed that out two years ago when I cited an example of marijuana cultivation by Mexicans in a U.S. National Forest near Green Bay, Wisconsin (good grief, Green Bay?). And where was the labor coming from? Illegal Mexican aliens. And what do you think is happening in California’s forests, with the help from 2 1/2 million illegals, mostly Mexican, residing in that state?

LABOR COSTS. This one is a no-brainer. For cultivation, harvesting and processing, the marijuana cartels operate on third world labor, in which wages are one-half or less of anything a legal process can establish in the U.S. End of story. No further discussion needed.

MARKET RESTRICTIONS. The states that have legalized marijuana for either medical and/or personal use all prohibit the sale to persons under 21 years of age. That’s MILLIONS of lost customers. Gee, I wonder where the youngsters will get their blow? Same place they get it now.

OVERHEAD. Taxes on marijuana by the states are the biggest factor here, just as they are with alcohol and tobacco (which, unlike marijuana, also deal with federal taxes). And regardless of what type of market the states set up, whether it is largely private or government-controlled or something in between, there will be land purchases, leases, security, property taxes, building maintenance, and a whole host of other costs that are less or even absent for the marijuana networks. And all of these aforementioned advantages for the marijuana cartels leads to ………

PRICE. Here’s where the rubber meets the road. Right now, the average retail price of marijuana is $3,200-$4,800 per pound in the West, $4,800-$6,400 in the Midwest and East, and topped by North Dakota and Hawaii at over $6,500 per pound as the highest prices in the country. These figures come from thepriceofweed.com. Remember, these retail prices reflect what is being charged in the ILLEGAL MARKET, because that is what the market will bear. But those prices are extremely flexible. You can come to places in Arizona, Texas, New Mexico, and California and buy Mary Jane for $500 a pound. That’s retail!!!! Think Los Angeles, San Diego, Phoenix, Tucson, Las Cruces, and El Paso. That’s $31.25 per ounce, compared with the average LEGAL $200 per ounce price at your local state-approved medical marijuana “clinic” in California and Colorado. Those are real world MARKET FORCES that should tell any rational human being why legalization of marijuana will not work.

So what’s the solution to this conundrum over marijuana? In three words, decriminalization versus legalization. To put in it into three more words, fines versus felonies. This is done in several states, such as Ohio and New York. Get caught with an amount of pot that the state defines as personal use, here’s your speeding ticket, so to speak. Pay the fine and off you go. No jail time, no felony on your record, and the fine goes into the state treasury coffers without the ginormous amount of money the states would have spent on this folly of trying to make a few extra bucks, which won’t happen, on legalizing and taxing marijuana. Win, win.” Unquote.

Fast forward to this AP (a very liberal media organization) article, “States could share plenty about legal pot sales,” by Kristen Wyatt published January 3, 2015. From the article …….

“one of the biggest disappointments of the (legal) marijuana markets (is) lower than hoped for tax collections … the effective tax rates are about 44 percent in Washington and 29 percent in Colorado ….. the states assumed users would pay a steep premium to stop using drug dealers and have clean, safe stores in which to buy their weed. But the tax rates have led to a continuing black market, undercutting the TOP ARGUMENT for legalizing it in the first place.” Comment: Heh. I win. Let’s hear it from the simplistic “Legalize it and tax it” crowd now.

“School districts in Colorado and Washington have reported more kids showing up at school with weed. Also, there have been more kids treated at emergency rooms for marijuana ingestions.” Comment: See what I said under “Market Restrictions” above about kids. They’re now getting Mary Jane from both illegal and legal sources, where that shit is now sold in edible products. This doesn’t mean a hill of beans to the pro-pot crowd on this site. Fuck the kids. Marijuana brownies now!!!! Marijuana brownies forever!!!! Right?

There are none so blind as those who will not see.


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Administrator
Administrator
January 4, 2015 6:28 am

Colorado Sells $34 Million Of Cannabis: $3.4 Million Goes To Schools, Crime Down 15%

December 30, 2014

In 2012, Colorado and Washington state legalized the recreational use of marijuana, much to the dismay of anti-pot advocates. They frequently alleged that it would make it easier for children to acquire, that more people would use it, that there would be more people driving while high, and that it would be an all around bad deal for these states.

In Colorado, it’s safe to say that the doomsayers were 100% wrong. Sales of recreational marijuana continue to rise with more than $34 million worth sold in August alone. That means that the state raised $3.4 million for building and maintaining schools in the state. At the rate the state is going, some $30 million will be brought in from pot taxes alone. That’s some serious dough!
.

karalan
karalan
January 4, 2015 6:43 am

This writer is confusing the effects of taxation with the effects of legalization. Time to start protesting being taxed to death on everything we do.

bb
bb
January 4, 2015 7:47 am

4000.to 6000.a pound for weed .Damn I am disgusted. All you got to do is grow about 10 pounds and sell it.You will make more then most Americans do in a year.No wonder so many people are in the drug business.I wonder if there’s opportunities for 53 year olds.

Bea Lever
Bea Lever
January 4, 2015 11:11 am

SSS

Good article. An ounce of weed at $200.00 per is more than the average schmuck can afford. How long would that last a dedicated pot smoker, maybe 3 or 4 days?

I will prolly catch hell for this but I am going to come down on the legalization side. The downside would be that millions of black males would not be incarcerated and would cause a increase in black population= mo “baby daddy” on the street.

Bea Lever
Bea Lever
January 4, 2015 11:24 am

Opps, correction I meant decriminalization not legalization.

overthecliff
overthecliff
January 4, 2015 11:27 am

Bea don’t be to concerned about a black baby boom. The wenches usually have a baby at 13 or 14 and the baby daddy disappears. She doesn’t stop the fun but gets abortions thereafter.

IndenturedServant
IndenturedServant
January 4, 2015 1:21 pm

Just as I predicted as well, those with concealed carry permits and those in possession of firearms are now getting some attention. In CO they are trying to make it legal to carry concealed and be high. Although stoners are generally harmless, they should not be allowed to carry guns while baked. It’s not that they’ll go on a rampage or anything, they’ll just shoot themselves and those in the area out of sheer stupidity.

Administrator
Administrator
January 4, 2015 1:33 pm

Colorado Gov. John Hickenlooper opposed marijuana legalization when it was on the ballot in 2012. But his administration has taken a considerably softer stance on legalization since then, with Hickenlooper and administration officials repeatedly emphasizing that it’s going better than expected. “The rollout has been pretty smooth,” Barbara Brohl, executive director of the Colorado Department of Revenue, told the Brookings Institution.

Even Attorney General Eric Holder, who opposes legalization and is charged with enforcing the federal prohibition of pot, said he’s “cautiously optimistic” about how legalization is proceeding in Colorado.

Prior to legalization, opponents of the policy warned of the many things that could go wrong. Law enforcement repeatedly claimed that crime would rise following legalization. Critics warned of a sharp increase in car accidents and other marijuana-related deaths. In the lead-up to Halloween, police and critics fanned fears of kids accidentally eating marijuana-laced candy.

While drug policy experts caution that it’s too early to know what the policy’s effects will be in the longer-term, nothing appeared to go horribly wrong in the first year of implementation. Serious crimes fell in Denver, the city with the most marijuana dispensaries. Fatal traffic accidents are near historic lows, according to an analysis from the Washington Post’s Radley Balko. And Halloween came and went with zero reported cases of kids in the Denver area accidentally consuming pot.

Revenues from marijuana sales also trended up throughout the year, providing the state with more money to build schools. Colorado was even able to give state residents a tax rebate because marijuana revenues came in higher than projected, according to the Denver Post.

dilligaf
dilligaf
January 4, 2015 1:36 pm

Bea Lever says:

“An ounce of weed at $200.00 per is more than the average schmuck can afford. How long would that last a dedicated pot smoker, maybe 3 or 4 days? ”

3 or 4 days on an ounce!? That would be one dedicated smoker.

ottomatik
ottomatik
January 4, 2015 2:52 pm

SSS- I am not sure what ‘I TOLD YOU SO’ is referencing, other than some incoherent, imperious, inane, self congratulation.
I think your contention is: “In October 2013, to be specific. That legalizing marijuana would be a total failure,”. Further,”based it strictly on market forces”. Huh?
Legalization has been a total market based failure for who? State Governments? Federal Government? Citizens of specific States, National? Illegal Immigrants? Foreign Governments or Foreign Nationals? Business?
Your post fails to differentiate between any of these aforementioned entities clearly enough for me to understand clearly ‘who’ legalization has failed.
Except in closing, your classic Statist, progressive, plea: FOR THE CHILDREN, is very clear, a decisive retreat to emotional supplication when logic and reason have failed.

Bea Lever
Bea Lever
January 4, 2015 4:11 pm

dilligaf

I don’t smoke weed but of the peeps I have known, an ounce rarely lasted them two weeks. Cheech and Chong would use that amount in one doobie.

EC
EC
January 4, 2015 4:22 pm

You didn’t mention the growing homeless population, my wife the church lady says she was surprised to see the church was full on the first weekend of the year. It turned out the homeless white boys decided it was a good idea to be indoors instead of outside where 32 degree air is brutal on the bones. They listened for a bit then made themselves comfortable on the pews. She said they were hard to wake up after the service.

wip
wip
January 4, 2015 5:06 pm

SSS is a dumbass. Freedom doesn’t lose. It is and always will be the winning formula for humanity.

ottomatik
ottomatik
January 4, 2015 6:27 pm

After reading the Post repeatedly I think I have found the essence of your position: you contend that based on Market conditions, by decriminalization and issuance of ‘tickets’ States will profit more than by taxation under legalization. Correct?

ottomatik
ottomatik
January 4, 2015 8:35 pm

SSS- I appreciate the discourse we have engaged in over the past years, there have been some fireworks. Admin likes to fan the flames on this particular issue as well, as noted by you. It will continue to produce flare ups hopefully.
That said, I fear we are still at odds philosophically, even though I contend your point may have some validity.
I do not support legalization as a revenue tool for the state. If revenue is generated by legalization it belongs to the people(Taxes a side issue). Further, the State and its Enforcers have used Marijuana Laws to incarcerate far too many good Americans relative to it’s supposed danger.
So, in conclusion, I agree with you, and thank god your correct! Going forward I hope the State does not generate as much Revenue from people enjoying snippets of their inalienable Liberty as it does from depriving them of it.

Bea Lever
Bea Lever
January 4, 2015 9:19 pm

I don’t think God makes mistakes, do you? Weed was put here by God to benefit mankind along with all of the other by beneficial plants in the world. Cannabidiol found in pot turns off a gene called (Id/1) which cancer cells use to spread, controls glaucoma etc. etc. Name anything .gov has taken control of that was not fubared to hell and back. I say we don’t need another tax for these government whores to skim off never to be accounted for.

Sensetti
Sensetti
January 4, 2015 10:06 pm

Don’t listen to Triple S and………..

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Sensetti
Sensetti
January 4, 2015 10:14 pm

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EC
EC
January 4, 2015 11:04 pm

No thanks, I’m out of my mind 8 hours a day while I sleep; getting pig eyed, shit faced, wasted, messed up, fucked up, totaled, etc. is not my idea of fun. If you have guilt problems to deal with, therapy is cheaper in the long run. Losing your wife, kids, home, job and self respect is just plain stupid. But what do I know, I’m just a bible thumper.

Sensetti
Sensetti
January 5, 2015 7:04 am

Triple S,
The United States has set sail for the lawless island of debauchery, pa…lease, do not try and fuck up our travel itinerary with your high minded moral compass, of which, is a relic of days gone bye. Sorry pal you’re about 20 years too late. So grab you a water bong and roast you a little Paonia purple bud, it won’t help, but you won’t give a shit!
Happy Tokin!!!!

Sensetti
Sensetti
January 5, 2015 7:54 am

EC, you wanna put a little Good Book in this thread, well, we can do that.

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Administrator
Administrator
  SSS
January 5, 2015 3:08 pm

I thought you were already 482 years old.

ottomatik
ottomatik
January 5, 2015 10:32 pm

Rich, keep it coming old man.

EC
EC
January 5, 2015 10:45 pm

I want to inject a little ‘WTF?’ Old farts tokin’?
Damn, once you turn 30, you should be the one telling yourself to get out of bed, go to work and stop acting like a maroon – those 50ish actors playing the tired part of stoned college morons is only Hollywood make believe.

Stop believing in Hollywood bullshit that a convenient lie solves all. It doesn’t, all it does is make you a liar. You bear the responsibility for young punks who look to you or n example and ind none but an excuse to do as you do.

Billah's wife
Billah's wife
January 6, 2015 12:27 am

The weed you git in CO requires one or 2 hits offen a vaporizer er uh 1 hitter to git pleasantly stoned, while any weed you git fer $500 a pound is gonna require a full joint, will leave you feeling groggy and make you munch down a bag er two of flamin hot cheetos, the consumption of which I truly believe have contributed mightily to poor Billah’s horrendous butt acne. It’s like comparin balvenie with beefeaters hon.

EC
EC
January 6, 2015 8:31 pm

I had a suspicion about BW and now I can say I was wrong, it aint ——- or ——–. It’s ——– which I’m embarrassed I didn’t figure out sooner. I had a suspicion and now I’m certain.